Urgent regulatory changes needed for equitable growth in solar panel generation

Santo Domingo.- Urgent regulatory changes are imperative for the sustainable development of distributed generation, predominantly consisting of individual solar panel solutions. The current model, affecting distributors with approximately $90 million, needs restructuring for equitable cost distribution, according to the technical document “Solar Panels in Electrical Systems: Study on Distributed Generation and its Impact on Public Finances” by Ecomod Business Consulting.

The proposal, detailed in the study led by economist Magín Díaz and international consultant Jerónimo Roca, advocates for regulatory and legislative modifications to foster balanced growth in solar panel generation, ensuring system stability, reliability, and equity in the electricity market.

During an economic press event organized by the Macro Ideas keynote program, Ecomod Business Consulting recommended revisiting the existing tariff scheme, the charge for distributor networks, and the incentive policy. The study emphasizes that solar technology maturity makes it unnecessary to maintain current tax facilities.

The prevailing global trend is shifting from net metering to net billing, and a draft of a new regulation proposing this change was mentioned during the event. The regulation aims to establish limits on injected energy to promote self-consumption and mitigate instability in the electrical system.

Due to the lack of effective regulations, solar panels have incurred significant costs for electricity distribution companies (EDEs), reaching around $90 million annually in 2023, mainly due to self-consumption, inadequate power charges, and overcompensation for injected energy.

Current tax incentives for individual solar panels, costing approximately $250 million in the last decade for the State and taxpayers, have also been highlighted as a concern. Despite reduced installation and generation costs, these incentives may no longer be justified for profitable solar panel investments, according to research conclusions presented by Magín Díaz.

Ecomod Business Consulting, a specialized consulting firm in taxes, economics, and finance, advocates for value-added decisions and cost optimization. Macro Ideas conferences, organized by Ecomod Consulting SRL, facilitate discussions among national and international experts to guide decision-making in the economic and financial domain of the Dominican Republic.